State Farm is one of the largest and most well-known insurance providers in the United States. With auto, home, life, and other policies available, millions of customers put their trust in State Farm for insurance protection.
But how does State Farm really stack up? Let’s dig into State Farm insurance reviews on the Better Business Bureau (BBB) website to find out.
Overview of State Farm Insurance
State Farm is an insurance company providing a wide variety of insurance policies, including:
- Auto insurance
- Homeowners insurance
- Renters insurance
- Condo insurance
- Life insurance
- Health insurance
- Disability insurance
- Banking products
- Financial services
The company was founded in 1922 and is headquartered in Bloomington, Illinois. State Farm operates as a mutual insurance company, meaning it is owned by policyholders rather than shareholders.
With over 19,000 agents nationwide and operations in the United States and Canada, State Farm is one of the largest insurance providers in North America.
State Farm’s BBB Profile
State Farm has been accredited by the BBB since 1931 and currently holds an A rating. The company’s BBB profile provides some quick facts:
- Business started: 1922
- Years in business: 101
- Headquarters: Bloomington, IL
The BBB profile for State Farm shows:
- 1,404 customer reviews
- Average customer review rating of 1.18 out of 5 stars
- 3,499 total closed complaints over the last 3 years
- 1,752 complaints closed in the last 12 months
Clearly, many State Farm customers have filed official complaints with the BBB and left negative reviews about their experiences. But what exactly are people complaining about?
Analysis of State Farm BBB Complaints
Digging into the actual customer complaints on State Farm’s BBB profile reveals some common grievances:
Claim denials – Many complaints involve State Farm denying claims or providing unsatisfactory claim settlements after accidents and property damage. Customers describe having legitimate claims denied over technicalities or offers that barely cover repair costs.
Premium increases – A number of complaints involve policyholders seeing their premiums increase dramatically without reason. Some people report premium hikes of 50-100% even with no claims made.
Poor customer service – Some complaints mention extremely long hold times when calling State Farm customer service numbers and difficulties getting responses from agents.
Policy cancellations – Several complaints report State Farm cancelling policies out of the blue, often after filing just one or two claims. This leaves customers scrambling to find new coverage.
Misleading sales tactics – Some complaints accuse State Farm agents of misleading customers about policy details, coverage exclusions, and premium rates during the sales process.
While State Farm has responded to most of these complaints, the sheer volume of grievances related to claim denials, policy cancellations, and poor customer treatment is concerning.
Analysis of State Farm Customer Reviews on BBB
The customer review section of State Farm’s BBB profile includes over 1,400 reviews with an average rating of just 1.18 out of 5 stars. Here is a sample of the negative feedback from customers:
“They do not pay claims.” – Reviewer describes water damage claim denied over a small leak despite paying premiums for 15 years.
“This company should be investigated for dishonesty and fraud.” – Customer claims State Farm routinely denies legitimate claims.
“I do not recommend State Farm.” – Reviewer says insurance premiums were wasted over 12 years when claim was ultimately denied.
“Stay away from insurance. They will always sell you more than you need.”
“Horrible. I had a total loss on my car…I am changing companies after being with them for 30 years.”
“Got a letter from DMV asking proof of insurance from my insurance company…I reach out to them but I guess no one cares till it’s time to pay a bill.”
However, some more positive State Farm reviews on BBB mention good experiences with claims and customer service. A few examples:
“State Farm made the claims process easy and painless.”
“My agent has always gone above and beyond to help me.”
“Prompt, courteous service. My questions were answered quickly and I didn’t have to wait long when I called.”
So while some customers appear happy with State Farm’s services, negative reviews focusing on denied claims and poor treatment outweigh positive feedback.
Common Pros and Cons of State Farm
Based on BBB complaints and reviews, here are some common pros and cons for State Farm auto and home insurance:
- Wide variety of insurance policies offered
- Availability of local agent support
- Smooth claims process for some customers
- Frequent denials of claims for minor damages
- Sudden increases in premium prices
- Difficulty reaching customer service for assistance
- Cancellation of policies after just 1 or 2 claims
- Misleading sales tactics reported by some customers
Is State Farm a Good Insurer According to BBB?
State Farm’s A rating and BBB accreditation mean it meets the BBB’s standards for transparent business practices. However, the volume of serious complaints around claims handling and cancellations is problematic.
The sheer number of negative customer reviews and 1-star ratings also indicate broad dissatisfaction with State Farm’s customer service.
For consumers considering State Farm policies, shopping around and comparing quotes with other top insurers may be wise. Competitors like Geico, Allstate, and Progressive may offer better rates and service.
That said, State Farm’s size and history point to reasonable financial stability. And some customers clearly have positive experiences, especially when making straightforward claims.
Overall, the concerns raised in State Farm’s BBB profile suggest consumers should proceed with caution. Carefully reviewing policy details and coverage limitations is essential before signing up. Anyone unhappy with claim denials or premium increases may want to switch providers.
Key Takeaways from State Farm’s BBB Profile
- State Farm has maintained BBB accreditation for 90+ years but has a concerning volume of complaints.
- Many customer complaints involve denied claims, policy cancellations, and poor customer service.
- Negative reviews frequently cite claim issues, premium hikes, and poor treatment of customers.
- Consumers should comparison shop and read policies closely before choosing State Farm.
- Competitors may offer better rates and service according to BBB data on State Farm.
The Bottom Line
State Farm is undoubtedly one of the most recognized insurance companies in America. But BBB reviews and complaints indicate major customer service and claims handling issues exist behind the brand name and marketing.
Consumers researching insurance have valid reasons to be cautious about relying on State Farm, based on experiences reported to the BBB. While State Farm remains an insurance giant, looking into alternatives could provide a better customer experience.
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